You are using, or considering using Xero and Shopify to power your eCommerce shop.
Here is some information that you should consider to decide if the Xero/Shopify sync will work for you:
- There is no option to sync batched invoices, or batched by payment method. So this sync will work well if you have about 20 sales a day, but would be very time consuming to work with if you have 200 sales a day. If you have a high daily volume of sales, we have other workarounds on offer. Please call us to discuss.
- Invoices are synced to Xero in detail, that is, each individual invoice, when paid is synced to Xero. Unpaid orders do not sync. Shopify does use a nice interface showing the payment method and invoice number – i.e in the reference Shopify will put afterpay | #4675 so you can easily filter on this information when matching a payout with the invoices in Xero.
- Shopify also syncs over merchant fees that are paid to Shopify for payments by Shopify (powered by Stripe). If a refund of merchant fees is given on a refund, the NET merchant fee is synced – i.e. if $6.40 is charged as the Shopify fee and $1.10 is credited due to a refund, the net amount of $5.30 is synced to Xero. To find this merchant fee, you must tick ‘show spend money’ when matching in Xero.
- If a refund is paid via Shopify, the refund is synced over as a paid credit note. So to find these paid credit notes that will need to be netted with the sales and merchant fees, you must tick ‘show spend money’ when matching in Xero.
- Shopify does not sync merchant fees paid for other payment methods. For example if Afterpay is used as a payment method, you will have to manually enter the merchant fee in Xero after choosing the invoice in the match screen.
- It is not possible to map different payment methods to different bank/clearing accounts using the Shopify sync.
- Shopify does not sync any information relating to cost of sales, at this stage it only sends over sales information.
CloudCounting are Xero and Shopify experts and we would be pleased to chat with you about your bookkeeping and taxation requirements. We can teach you how to bookkeep yourself, quote you on a bookkeeping package, or work with you to prepare your monthly accounts.
Please call us on 04 26 625 683 to have a chat about your Xero and Shopify setup.